As per reports, Russian antimonopoly authorities have initiated a check on the ads of FreshForex, the online trading firm. The order has been issued from the Moscow office of the Russian Federal Antimonopoly Service (FAS).
If sources are to be believed, this halt on FreshForex ads has been ordered owing to its non-compliance with the law.
What prompted this order is a signal by Russia’s Association of Forex Dealers, a Russian Forex industry self-regulatory body. Prior to this, earlier in October this year, FAS had declared a check into the FreshForex ads along with an investigation on InstaForex regarding its advertising message.
Violation of Law
The investigations revealed that FreshForex and InstaForex have no Forex dealer license issued by the Central Bank of Russia, which is why the advertisements of the FreshForex, distributed through Yandex; and also InstaForex’s, stand in violation of the Law on Advertising.
Moreover, there was no warning regarding the high risk of losing the whole investment, in the advertisements.
Absence of such a warning from the disclaimer, or even failing to put it on the “landing page,” is considered a serious act of infringement.
Hence the Moscow office directed Yandex Europe AG and Zaneta Seic, a Lithuanian citizen, to terminate and refrain from the breach and immediately halt ads distribution.
This step goes on to emphasize that the advertisements of services of organizations with no proper license, will not be entertained on any account.
Set up in 2004, FreshForex is one of the leading currency trading company on the Forex market-based in Russia. Known for granting access to both Forex and CFD markets, it is licensed as Riston Capital Limited. The success behind this online trading business lies in the fact that the Forex’s founders came in with quite a bit of prior experience in the financial and trading domain.
It is regulated by the Center for Regulation with the OTC Financial Instruments and Technologies (CRFIN) and KROUFR, with St. Vincent and the Grenadines being its two headquarters. FreshForex’s plus point is that it can arrange quite low-priced online trade and yet make it pretty pleasant.